Generac Stock Rises on Major Supply Deal with Amazon
Shares of Generac (GNRC) surged over 18% intraday following a major supply agreement with an Amazon subsidiary. The deal involves up to $8 billion in backup power generators for Amazon data centers, with initial deliveries expected to total $2.4 billion across 2027 and 2028. Analysts from Barclays, Bloomberg Intelligence, and JPMorgan have expressed optimism about the long-term benefits of this agreement, including increased manufacturing capacity and higher-than-expected earnings per share (EPS) for 2027. Generac's data center business has become a key growth driver after shifting focus away from residential generators. The company reported strong second-quarter results with net sales rising to $1.17 billion and adjusted EPS increasing by 76.4% year-over-year. With the deal securing significant future demand, analysts believe Generac is well-positioned for continued expansion in its commercial and industrial segments.
Topics: Amazon Data Centers Generac Stock Performance